SanDisk's Recent Dip May Present a Buying Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy SNDK?
Source: Yahoo Finance
- Market Pullback Analysis: SanDisk's stock has pulled back 14% from its February highs, yet it trades at a forward P/E of 15 times, indicating that its valuation remains attractive and may present a buying opportunity for investors.
- Industry Cycle Shift: As a leading producer of NAND storage devices, SanDisk is at the beginning of what appears to be a long-lasting supercycle, driven by surging demand for high-performance solid-state drives from AI data centers, suggesting a positive market outlook.
- Price Surge Drivers: With a NAND shortage, SanDisk's revenue jumped 61% last quarter, while gross margins expanded from 32.3% to 50.9%, significantly enhancing profitability and laying a solid foundation for future growth.
- Cautious Investment Advice: Despite SanDisk's strong market performance, the Motley Fool Stock Advisor analyst team did not include it in their current list of top investment stocks, prompting investors to carefully assess its investment value.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 630.290
Low
220.00
Averages
283.69
High
410.00
Current: 630.290
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of cloud, client and consumer. Its cloud end market is comprised primarily of products for public or private cloud environments and enterprise customers. The Company, through the client end market, provides numerous data solutions that it incorporates into its client’s devices, which consist of solid state drive desktop and notebook personal computers, gaming consoles and set top boxes, and flash-based embedded storage products. The Company serves the consumer end market with a portfolio of solid state drives and removable flash, including cards and USB flash drives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sandisk's Future Growth Potential as Flash Storage Leader
- Stock Surge: Since its spin-off from Western Digital, Sandisk's shares have skyrocketed by 1,400%, reflecting strong market demand for its flash storage solutions and investor confidence in its future performance.
- Significant Revenue Growth: In Q2 of fiscal 2026, Sandisk's revenue from the edge devices market reached nearly $1.7 billion, a 63% year-over-year increase, primarily driven by the proliferation of AI in PCs and smartphones, with strong growth expected over the next three years.
- Surging Data Center Demand: Sandisk's data center revenue increased by 76% year-over-year to $440 million, and as demand for fast flash storage solutions rises, this segment is expected to have a more substantial impact on the company's performance in the coming three years.
- Massive Earnings Potential: Sandisk's earnings per share are projected to increase by 1,220% this fiscal year to $39.45, and assuming a conservative 25% growth in fiscal 2028, EPS could exceed $95, with a potential stock price of $2,375 based on Nasdaq-100's earnings multiple, indicating significant upside potential.
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Tech Stocks Rebound: Ciena, Sandisk, and ServiceNow Show Promising Outlook
- Ciena's Growth Potential: Ciena's leadership in networking and connectivity has led to a surge in demand as a key player in AI infrastructure, with expectations for its data center business to double sales by 2025, and its addressable market projected to grow from $600 billion to $1 trillion by 2028, indicating strong long-term growth potential.
- Sandisk's Performance Surge: Since splitting from Western Digital, Sandisk's stock has skyrocketed 1,440%, with data center revenue increasing 64% sequentially and 61% year-over-year in Q2 2026, showcasing robust demand and profitability in the NAND flash memory market.
- ServiceNow's Market Opportunity: Despite a 50% decline in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies present growth opportunities, with a current P/E ratio of 29 indicating room for expansion.
- Tech Stock Overall Rebound: As investors refocus on undervalued tech stocks, the S&P 500 has had a lukewarm start, while the Dow Jones Industrial Average reached a record high of 50,000, reflecting a recovering market confidence in technology stocks.
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Market Dynamics of Ciena, Sandisk, and ServiceNow
- Ciena Demand Surge: As companies build new data centers, demand for Ciena's networking components is accelerating, with expectations for its data center business to double sales by 2025, and its addressable market projected to grow from $600 billion to $1 trillion by 2028, highlighting its critical role in AI infrastructure.
- Sandisk Performance Boom: Sandisk's stock has skyrocketed 1,440% since splitting from Western Digital, with data center revenue up 64% sequentially and 61% year-over-year in Q2 2026, reflecting strong demand for NAND flash memory, particularly in AI hyperscalers.
- ServiceNow Market Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at current prices, with significant growth potential anticipated in 2026.
- Investor Attention: While Ciena is viewed as a high-growth tech stock, it was not included in Motley Fool's current list of top investment picks, indicating that investors should exercise caution and stay informed about market trends.
See More
Three Hyper-Growth Tech Stocks to Buy in 2026
- Ciena's Market Potential: Ciena leads in networking and connectivity, with its data center business expected to double sales by 2025, growing its addressable market from $600 billion last year to $1 trillion by 2028, indicating strong growth potential and profitability.
- Sandisk's Strong Performance: Since splitting from Western Digital, Sandisk's stock has surged 1,440%, with data center revenue up 64% sequentially in Q2 2026, reflecting robust demand for NAND flash memory, and adjusted EPS reaching $6.20, significantly higher than last year's $1.23.
- ServiceNow's Investment Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at a P/E ratio of 29, indicating substantial growth potential ahead.
- AI-Driven Technological Transformation: As AI technology evolves, companies like Ciena, Sandisk, and ServiceNow are strategically adapting to market demands, particularly with Ciena and Sandisk's rapid growth in the data center sector, signaling future investment opportunities.
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Sandisk and TSMC: Bright Prospects Amid Market Recovery
- Attractive Valuation for Sandisk: Despite Sandisk's (SNDK) stock price doubling this year, its forward P/E ratio remains at 15 times, indicating strong attractiveness for fiscal 2026, with expectations of robust revenue growth driven by the recovery in the flash memory market over the coming years.
- Surging NAND Prices: The surge in demand for high-performance solid-state drives in AI data centers has led to a significant increase in NAND prices, boosting Sandisk's sales and gross margins, which is expected to enhance its competitive position and solidify its market share.
- TSMC's Market Dominance: Taiwan Semiconductor Manufacturing (TSM), as the world's largest foundry, has a forward P/E of about 26 times, and despite trading near all-time highs, its central role in AI infrastructure makes it a valuable investment, with AI chip revenue projected to grow at over 50% annually through 2029.
- Strong Pricing Power: TSMC's near-monopoly in advanced chip manufacturing, characterized by high pricing power and low defect rates, positions it as a crucial partner for chip designers, ensuring continued benefits from the surging demand for AI chips in the future.
See More
Recovery in NAND Market and TSMC's Bright Future
- NAND Market Recovery: Sandisk's stock has more than doubled this year, yet it trades at an attractive forward P/E of 15 times, indicating strong revenue growth and high margins during the ongoing flash memory supercycle.
- Production Adjustments Impact: Following an oversupply caused by a surge in demand during the COVID-19 pandemic, memory makers significantly cut production and shifted focus to DRAM; however, the surge in demand for high-performance SSDs in AI data centers has led to a rebound in NAND prices, benefiting Sandisk.
- TSMC's Market Position: While trading near all-time highs, TSMC's forward P/E is around 26 times, and as the world's largest foundry, it plays a crucial role in the rapid growth of AI infrastructure, possessing significant pricing power.
- AI Chip Revenue Growth: TSMC anticipates its AI chip revenue to grow at an annual rate exceeding 50% through 2029, making its stock attractive despite being near historical highs due to robust market demand.
See More
Sandisk's Future Growth Potential as Flash Storage Leader
- Stock Surge: Since its spin-off from Western Digital, Sandisk's shares have skyrocketed by 1,400%, reflecting strong market demand for its flash storage solutions and investor confidence in its future performance.
- Significant Revenue Growth: In Q2 of fiscal 2026, Sandisk's revenue from the edge devices market reached nearly $1.7 billion, a 63% year-over-year increase, primarily driven by the proliferation of AI in PCs and smartphones, with strong growth expected over the next three years.
- Surging Data Center Demand: Sandisk's data center revenue increased by 76% year-over-year to $440 million, and as demand for fast flash storage solutions rises, this segment is expected to have a more substantial impact on the company's performance in the coming three years.
- Massive Earnings Potential: Sandisk's earnings per share are projected to increase by 1,220% this fiscal year to $39.45, and assuming a conservative 25% growth in fiscal 2028, EPS could exceed $95, with a potential stock price of $2,375 based on Nasdaq-100's earnings multiple, indicating significant upside potential.
See More
Tech Stocks Rebound: Ciena, Sandisk, and ServiceNow Show Promising Outlook
- Ciena's Growth Potential: Ciena's leadership in networking and connectivity has led to a surge in demand as a key player in AI infrastructure, with expectations for its data center business to double sales by 2025, and its addressable market projected to grow from $600 billion to $1 trillion by 2028, indicating strong long-term growth potential.
- Sandisk's Performance Surge: Since splitting from Western Digital, Sandisk's stock has skyrocketed 1,440%, with data center revenue increasing 64% sequentially and 61% year-over-year in Q2 2026, showcasing robust demand and profitability in the NAND flash memory market.
- ServiceNow's Market Opportunity: Despite a 50% decline in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies present growth opportunities, with a current P/E ratio of 29 indicating room for expansion.
- Tech Stock Overall Rebound: As investors refocus on undervalued tech stocks, the S&P 500 has had a lukewarm start, while the Dow Jones Industrial Average reached a record high of 50,000, reflecting a recovering market confidence in technology stocks.
See More
Market Dynamics of Ciena, Sandisk, and ServiceNow
- Ciena Demand Surge: As companies build new data centers, demand for Ciena's networking components is accelerating, with expectations for its data center business to double sales by 2025, and its addressable market projected to grow from $600 billion to $1 trillion by 2028, highlighting its critical role in AI infrastructure.
- Sandisk Performance Boom: Sandisk's stock has skyrocketed 1,440% since splitting from Western Digital, with data center revenue up 64% sequentially and 61% year-over-year in Q2 2026, reflecting strong demand for NAND flash memory, particularly in AI hyperscalers.
- ServiceNow Market Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at current prices, with significant growth potential anticipated in 2026.
- Investor Attention: While Ciena is viewed as a high-growth tech stock, it was not included in Motley Fool's current list of top investment picks, indicating that investors should exercise caution and stay informed about market trends.
See More
Three Hyper-Growth Tech Stocks to Buy in 2026
- Ciena's Market Potential: Ciena leads in networking and connectivity, with its data center business expected to double sales by 2025, growing its addressable market from $600 billion last year to $1 trillion by 2028, indicating strong growth potential and profitability.
- Sandisk's Strong Performance: Since splitting from Western Digital, Sandisk's stock has surged 1,440%, with data center revenue up 64% sequentially in Q2 2026, reflecting robust demand for NAND flash memory, and adjusted EPS reaching $6.20, significantly higher than last year's $1.23.
- ServiceNow's Investment Opportunity: Despite a 50% drop in stock price over the past year, ServiceNow's dominant position in workflow software and partnerships with AI companies suggest it is undervalued at a P/E ratio of 29, indicating substantial growth potential ahead.
- AI-Driven Technological Transformation: As AI technology evolves, companies like Ciena, Sandisk, and ServiceNow are strategically adapting to market demands, particularly with Ciena and Sandisk's rapid growth in the data center sector, signaling future investment opportunities.
See More
Sandisk and TSMC: Bright Prospects Amid Market Recovery
- Attractive Valuation for Sandisk: Despite Sandisk's (SNDK) stock price doubling this year, its forward P/E ratio remains at 15 times, indicating strong attractiveness for fiscal 2026, with expectations of robust revenue growth driven by the recovery in the flash memory market over the coming years.
- Surging NAND Prices: The surge in demand for high-performance solid-state drives in AI data centers has led to a significant increase in NAND prices, boosting Sandisk's sales and gross margins, which is expected to enhance its competitive position and solidify its market share.
- TSMC's Market Dominance: Taiwan Semiconductor Manufacturing (TSM), as the world's largest foundry, has a forward P/E of about 26 times, and despite trading near all-time highs, its central role in AI infrastructure makes it a valuable investment, with AI chip revenue projected to grow at over 50% annually through 2029.
- Strong Pricing Power: TSMC's near-monopoly in advanced chip manufacturing, characterized by high pricing power and low defect rates, positions it as a crucial partner for chip designers, ensuring continued benefits from the surging demand for AI chips in the future.
See More
Recovery in NAND Market and TSMC's Bright Future
- NAND Market Recovery: Sandisk's stock has more than doubled this year, yet it trades at an attractive forward P/E of 15 times, indicating strong revenue growth and high margins during the ongoing flash memory supercycle.
- Production Adjustments Impact: Following an oversupply caused by a surge in demand during the COVID-19 pandemic, memory makers significantly cut production and shifted focus to DRAM; however, the surge in demand for high-performance SSDs in AI data centers has led to a rebound in NAND prices, benefiting Sandisk.
- TSMC's Market Position: While trading near all-time highs, TSMC's forward P/E is around 26 times, and as the world's largest foundry, it plays a crucial role in the rapid growth of AI infrastructure, possessing significant pricing power.
- AI Chip Revenue Growth: TSMC anticipates its AI chip revenue to grow at an annual rate exceeding 50% through 2029, making its stock attractive despite being near historical highs due to robust market demand.
See More
